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  3. Study Set
    Applied International Economics
  4. Exam
    Exam 14: Exchange Rates and Their Determination: A Basic Model
  5. Question
    Purchasing Power Parity Implies That Exchange-Rate Depreciation Is Caused by Differences
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Purchasing Power Parity Implies That Exchange-Rate Depreciation Is Caused by Differences

Question 17

Question 17

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Purchasing Power Parity implies that exchange-rate depreciation is caused by differences in inflation rates across countries.

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